Infosys says employees impacted by RBS deal loss will be reallocated, not fired

Infosys said the 3000 employees affected by the loss of the Royal Bank of Scotland deal were not being fired but would be reallocated to other projectsJochelle Mendonca | ET Bureau | August 16, 2016, 16:16 IST

Infosys said the 3000 employees affected by the loss of the Royal Bank of Scotland deal were not being fired but would be reallocated to other projects.

On Saturday Infosys had said that its contract with RBS would be affected by the UK-lender’s decision to junk its plan to separate and list a new UK standalone bank, Williams & Glyn (W&G), and instead pursue other options for the divestment of this business.

Infosys had said that it would perform an orderly ramp-down of about 3,000 persons, primarily in India, over the next few months, a statement that was interpreted by some media organizations as a decision to let go those employees. Infosys had won the $300 million five-year contract in 2013.

“These employees are not being let go. They will be reallocated in other projects,” an Infosys spokesperson told ET.

Analysts have said that the loss the deal will likely force Infosys to revise its FY17 guidance once more. Last month, Infosys had cut its revenue growth forecast to to 10.5%--12% in constant currency terms, from the previously estimated 11.5%--13.5%.

Analysts had said meeting the revised forecast would also pose challenges for the Bangalore-headquartered firm.